CSL Update

Submitted by Craig Strzelecki on 18 May, 2007 - 17:56

Sharemarket analyst Citi Research has provided a CSL update: Plasma prices are still high in Europe with IVIG at US$60 plus. Recent contracts of IVIG into Brazil have been as high as $US75. Albumin is tracking US prices at US$2.40/bottle. Baxter is selling pdFVIII at 23 cents/unit as the main revenue comes from rFVIII. The recently completed tenders for albumin in the UK in April did not attract any new tenderers back into the UK market. This means that demand for albumin in China is continuing and supplies are being diverted from Europe. This is contributing substantially to European price strength in albumin. Estimates of quantity into China are 20 tonnes at up to $US3 per gram which is more than the price in the UK. This is also a risk as the Chinese market has been historically fickle. There have been no great moves in the overall prices of pdFVIII, although Baxter has been selling off pdFVIII at 23c/IU as the market is predominantly rFVIII. The next tenders for FVIII and FIX will be in Bonn where sizeable orders from haemophilia centres could be looking for 100m IUs. Fractionation capacity expansion is on hold in Russia as the CSL plant which was to built using Kedrion technology is no longer on the plan, with the project collapsing recently. Russia currently imports around 20% of its requirements, and has increased its imports of FVIII by six-fold over the last 18 months. The Arab States market has traditionally not met world prices, but has met them in the recent SGC Gulf tender. Countries such as Egypt which are struggling for supply are importing from Cuba and Shanghai. These places do not affect supply levels in developed countries however, due to compliance issues.

CSL Limited is listed on the Australian Stock Exchange (ASX) under stock code CSL. You can view their investor website here. CSL was listed on the ASX on 8 June, 1994. Elizabeth Alexander is the chairman for CSL and Brian A McNamee the CEO. This company is a global, specialty biopharmaceutical company that develops, manufactures and markets products to treat and prevent serious human medical conditions. They are involved in the development, manufacturing and marketing of pharmaceutical and diagnostic products, cell culture media and human plasma fractions. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade CSL. Check your charts and good luck with your share trading!

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